Ammonia is one of the hottest topics in the energy market as is evident from multiple project announcements, FEED & EPC awards and in some cases positive Final Investment Decisions on large clean ammonia projects. In April, Yara and Enbridge announced they signed a letter of intent for the joint development of a ~US$2.9 billion CCS-based clean ammonia production facility at the Enbridge oil storage and export facility near Corpus Christi. Production is anticipated to start around 2027-28 with a supply capacity of 1.2 – 1.4 MTPA once fully operational…and there are many such project initiatives dotted along the U.S. Gulf Coast. So, what is driving this interest amongst project developers, energy companies and the investment community? While the future of ammonia will be shaped by changes to technology, and economics, there have been significant policy developments in the US, providing investment and production tax credits offered under the Inflation Reduction Act (“IRA”). Supportive policies such as the IRA along with commercial support globally for a cleaner fuel will foster international interest in transitioning from “grey” ammonia to “blue/Green” ammonia. This article explores commercial developments in the U.S. ammonia space.

What is ammonia? NH3, or ammonia, is a colorless, pungent gas at room temperature. Ammonia has many desirable physical properties that allow for efficient deployment